Photo AI
Explain one internal cause of the business failure of MG Rover Group - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2
Question 2
Explain one internal cause of the business failure of MG Rover Group. The MG Rover Group was the last UK-owned mass-production car manufacturer in the British motor... show full transcript
Worked Solution & Example Answer:Explain one internal cause of the business failure of MG Rover Group - Edexcel - A-Level Business - Question 2 - 2018 - Paper 2
Step 1
Step 2
Application: Contextual Examples
Answer
The failure to produce new and improved models led to poor sales, as consumers were drawn to foreign rivals that offered superior quality and features. Additionally, the high production costs of the Mini, one of their key models, further contributed to financial losses.
Step 3
Analysis: Developing a Cause
Answer
This failure to innovate may have significantly reduced sales, as customers would prefer cars that met their evolving preferences. Moreover, high production costs due to inefficiencies could lead to poor profit margins, exacerbating MG Rover's financial difficulties.